Bitcoin Just Rejected $6,600 and Its Vulnerable To a Short-Term Correction

Bitcoin is up more than 8% and it broke the $6,500 resistance area against the US Dollar. BTC price is now struggling to clear $6,600 and it could correct lower in the short term.

Bitcoin gained bullish momentum above the $6,200 and $6,400 levels against the US Dollar.

The price topped near the $6,640 level and it is currently correcting lower.

There is a connecting bullish trend line forming with support near $6,420 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair could correct lower towards the $6,280 area if it breaks the trend line support.

Bitcoin Gains 8%

After a successful close above the $6,000 area, bitcoin price formed a support base against the US Dollar. As a result, BTC price started a steady increase above the $6,200 resistance and the 100 hourly simple moving average.

The price gained pace and traded above the $6,400 pivot area. It is up more than 8% and it even climbed above the $6,500 resistance. A high is formed near the $6,641 level and it seems like the price is struggling to gain strength above $6,600.

Bitcoin is currently correcting lower and trading below the $6,500 level. It broke the 23.6% Fib retracement level of the recent rally from the $5,846 low to $6,641 high.

On the downside, an initial support is near the $6,400 area. There is also a connecting bullish trend line forming with support near $6,420 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Below the trend line support, the price could test the $6,300 area and the 100 hourly SMA. The main support seems to be forming near the $6,240 level. It is close to the 50% Fib retracement level of the recent rally from the $5,846 low to $6,641 high.

If the bulls fail to protect the $6,300 and $6,240 levels, there is a risk of another bearish wave. In the mentioned bearish case, the price could dive towards the $6,000 level.

More Upsides?

If bitcoin remains stable above $6,400 or $6,300, it could make another attempt to gain strength above the $6,600 resistance area.

A successful close above the $6,600 level and a follow through above $6,640 may perhaps spark a decent upward move towards the $6,800 and $7,000 resistance levels.

Technical indicators:

Hourly MACD – The MACD is currently losing momentum in the bullish zone.